Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥68.85B
• Dividend Yield: 1.44%
• Average Volume (3M): 536.28K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 0.86
• Revenue Growth: -8.92%
• EPS Growth: 1.67%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 26.18
• Shares Outstanding: 29,347,500
• 10 Day Avg. Volume: 294,130
• 30 Day Avg. Volume: 536,283
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -78.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥3,069.00 ▲(10.28% Upside)

The overall stock score is primarily influenced by strong financial performance, despite challenges in cash flow management. Technical analysis indicates bearish momentum, which negatively impacts the score. Valuation suggests potential overvaluation, further affecting the overall assessment.

Positive Factors

Financial Stability

A low debt-to-equity ratio indicates minimal financial leverage and low risk, providing a stable financial foundation for long-term operations.

Market Position

Being a leader in the cement industry positions Nippon Hume well to capitalize on infrastructure projects and urban development, ensuring sustained demand.

Profitability

A solid net profit margin reflects effective cost management and pricing power, contributing to long-term profitability and competitive advantage.

Negative Factors

Cash Flow Management

Challenges in cash flow management can hinder investment in growth opportunities and affect financial flexibility, impacting long-term sustainability.

Revenue Growth

A decline in revenue growth suggests potential challenges in market demand or competitive pressures, which could affect future earnings potential.

Operational Efficiency

A lower EBIT margin compared to peers may indicate inefficiencies in operations, which could impact profitability if not addressed.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation designs, manufactures, and sells concrete secondary products in Japan and internationally. The company offers pipeline products, such as hume tubes and synthetic steel pipes, box and arch culverts, assembly manholes, precast joint grooves, wellman products, jip pipes, propulsion pipes, optical fiber compatible products, and antibacterial concrete products; concrete piles; RC segments and FN fittings; and PC and composite wells, and press casts and PRC hollow piers. It also provides multi-arch divided systems, precast guard fences, EMC wall rails, and wall railings; and valve boxes, precast retarding basins, and eco concrete products, as well as optical fiber cables. Further, the company is involved in the construction contracting, and civil engineering and telecommunications works; sale of concrete products and big agents; sports business; manufacture, sale, design, and equipment construction of deplant deodorization system; maintenance of buildings; manufacture and sale of formwork for concrete products; real estate business; laying business; and pipeline diagnosis business. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Hume Corp. generates revenue primarily through the sale of cement and concrete products to the construction industry. Its key revenue streams include the production and distribution of ready-mixed concrete, precast concrete products, and other cement-based materials. The company benefits from long-term contracts with construction firms and government projects, ensuring a steady flow of income. Additionally, Nippon Hume has established partnerships with various stakeholders in the construction sector, allowing it to leverage collaborative projects that enhance its market presence. Factors contributing to its earnings include the demand for construction materials in urban development, infrastructure projects, and a focus on environmentally friendly practices that attract clients looking for sustainable solutions.

Nippon Hume Corp. Financial Statement Overview

Summary

Nippon Hume Corp. demonstrates strong revenue growth and robust financial stability with a low debt-to-equity ratio and high equity ratio. However, cash flow management needs improvement, as indicated by negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.09B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.07B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.49B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	2.97B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.62B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	11.74B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	3.02B	855.03M	1.51B	1.07B	982.03M	928.05M
Total Liabilities	13.38B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	43.76B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2783.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Negative. The current price of 2783 is below the 20-day moving average (MA) of 2948.45, below the 50-day MA of 3147.28, and above the 200-day MA of 2583.21, indicating a neutral trend. The MACD of -91.71 indicates Negative momentum. The RSI at 33.59 is Neutral, neither overbought nor oversold. The STOCH value of 18.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	78 Outperform	¥11.79B	11.64	―	3.84%	0.58%	-9.72%
6485	76 Outperform	¥31.65B	10.75	―	4.40%	-0.34%	50.73%
7943	66 Neutral	¥102.17B	30.55	―	3.62%	-0.58%	-46.15%
5273	65 Neutral	¥106.69B	12.41	―	1.95%	12.72%	28.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5262	57 Neutral	¥68.85B	23.22	―	1.44%	-8.92%	1.67%
5337	54 Neutral	¥16.88B	15.03	―	―	-5.45%	―

Nippon Hume Corp. Corporate Events

Nippon Hume Corp. Revises Financial Forecasts Upward for FY 2026

Nippon Hume Corporation has revised its financial forecasts for the fiscal year ending March 31, 2026, indicating an upward adjustment in operating profit, ordinary profit, and profit attributable to owners of the parent. The revisions are attributed to improved profitability, cost reductions, and gains from the sale of investment securities, which are expected to significantly exceed initial expectations, reflecting a positive impact on the company’s financial performance.

Nippon Hume Announces Dividend Increase Amid Positive Profit Outlook

Nippon Hume Corporation announced a resolution to pay interim dividends from surplus, with a record date of September 30, 2025, and an effective date of December 10, 2025. The dividend per share is set at 22 yen, including a 3 yen commemorative dividend. Additionally, the company revised its year-end dividend forecast for the fiscal year ending March 31, 2026, increasing it by 2 yen per share to 13 yen. This decision reflects the company’s expectation of higher profit attributable to owners of the parent and aims to express gratitude to shareholders, resulting in an anticipated annual dividend of 48 yen per share, up by 4 yen from the previous year.

Nippon Hume Reports Decline in Profits Amid Strategic Stock Split

Nippon Hume Corporation reported its consolidated financial results for the six months ended September 30, 2025, showing a decline in net sales and profits compared to the previous year. Despite a decrease in net sales by 11.5% and a reduction in operating profit by 22%, the company announced a stock split effective January 1, 2025, and revised its dividend forecast, indicating a strategic move to enhance shareholder value.

Nippon Hume Completes Treasury Share Acquisition to Enhance Capital Strategy

Nippon Hume Corporation has completed the acquisition of 200,000 treasury shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, as part of its strategy to implement flexible capital policies and enhance shareholder value. This move, resolved by the Board of Directors in August 2025, reflects the company’s response to the current business environment and its financial strategy to optimize capital structure.

Nippon Hume Corp. Announces Treasury Share Buyback Plan

Nippon Hume Corporation has announced its decision to repurchase 200,000 of its common shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, at a fixed price of ¥3,270 per share. This strategic move, resolved at the Board of Directors meeting, aims to optimize the company’s capital structure and potentially enhance shareholder value, though the actual execution of the purchase may vary based on market conditions.

Nippon Hume Reports No Treasury Share Purchases in September

Nippon Hume Corporation announced that no treasury shares were purchased during the period from September 1 to September 30, 2025, despite a prior resolution allowing for the acquisition of up to 200,000 shares. This lack of activity in share repurchase could impact the company’s market positioning and shareholder value strategy.

Nippon Hume Announces Share Split and Financial Strategy Adjustments

Nippon Hume Corporation announced a share split to enhance corporate value and improve share liquidity, effective January 1, 2026. The company also amended its Articles of Incorporation to increase authorized shares, revised treasury share purchases, and adjusted dividend forecasts, reflecting the share split’s impact on its financial strategies.